OpenAI to release new artificial intelligence model for free

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OpenAI is releasing a new AI model for free in response to a Chinese competitor. The model, called o3-mini, comes after DeepSeek's unexpected success with its R1 chatbot, which shocked the tech world. DeepSeek's chatbot quickly topped Apple's free app store and claimed to have been developed at a fraction of the cost of U.S. models. This news caused a huge drop in U.S. tech stocks.



OpenAI's CEO, Sam Altman, said the company would speed up its product releases in response. The o3-mini model is a simpler version of a more powerful model called o3, which hasn't been released yet. It's available for free, but with some usage limits for users of OpenAI's free chatbot.

DeepSeek's R1 model not only matched OpenAI's performance but was developed with fewer resources. This has raised questions about whether U.S. companies can maintain their dominance in AI, given the massive investments they've made.

OpenAI says o3-mini performs similarly to its earlier model, o1, but at a lower cost and with faster response times. Users who pay $200 a month for the ChatGPT Pro plan get unlimited access, while those on the cheaper Plus plan get higher usage limits than free users.

The full o3 model has also caught attention for its potential AI risks. In a recent report, AI expert Yoshua Bengio said o3's performance in certain tests was a breakthrough, even outperforming many human experts.